Kroll Bond Rating Agency Assigns Long-Term Rating of AA to State of
Connecticut’s $500 million General Obligation Bonds of 2014, Series F,
G, & H.

November 19, 2014 06:27 PM Eastern Standard Time

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) has assigned a long-term rating of AA
with a stable outlook tothe State of Connecticut’s $500 million
General Obligation Bonds 2014 Series F,G, & H. In addition, KBRA affirms
the long-term rating of AA with a stable outlook on the State’s
outstanding General Obligation Bonds, excluding Bonds backed by a letter
of credit or liquidity facility. After issuance of these Bonds, the
State’s outstanding general obligation debt will total approximately
$16.4 billion.

The rating is based on KBRA’s U.S.
State General Obligation Rating Methodology published on March
28, 2012. The Bonds are General Obligations of the State and are secured
by Connecticut’s full faith and credit pledge. Proceeds from the 2014
Series F bonds will be used to fund various capital projects and
purposes of the State, including local school construction projects. The
2014 Series G bonds are identified as “Green Bonds” and will finance a
portion of various high priority clean water projects across the State
for design, construction and improvements to wastewater treatment plants
and related energy efficiency upgrades designed to reduce water
pollution in the State. Proceeds from the 2014 Series H bonds will be
used to refund a portion of outstanding State general obligation debt.

KBRA views the State’s ongoing lag in economic recovery and its impact
on budgetary operations as continuing to pressure the fiscal operations
of the State. The slow pace of the economic recovery, compared to the
region and the nation, has created increased demand for services while
some economically sensitive revenue collections, including income tax
and sales tax collections, continue to be below expectations. KBRA will
continue to monitor the State’s consensus revenue process and its
ability to accurately project estimates of income tax revenues related
to the realization of capital gains and other economically sensitive
revenues. KBRA expects that the State will continue to actively monitor
its budget projections and act to increase revenues or reduce
expenditures in order to maintain budget balance.

Please use the following links to view KBRA’s full report and tear-sheet
on the State:

KBRA is registered with the U.S. Securities and Exchange Commission as a
Nationally Recognized Statistical Rating Organization (NRSRO). In
addition, KBRA is recognized by the National Association of Insurance
Commissioners (NAIC) as a Credit Rating Provider (CRP).